NU Online News Service, Oct. 21, 11:23 a.m. EDT
The Travelers Companies said its 2010 third quarter net income is up 7 percent to about $1 billion.
Last year at the third quarter, net income was $935 million.
During a conference call to discuss the results, Chairman and Chief Executive Officer Jay Fishman continued to stress that the companies are not focused on growth but on account retention and seeking rate "selectively and thoughtfully" while underlining careful risk selection.
"This is a long term business and we manage it over time," said Mr. Fishman. He said retention rates remain at a historic high.
Net written premiums were up 2 percent in the third quarter compared to the same time in 2009, reflecting positive renewal premium changes.
The combined ratio for the third quarter was 90.6, up from 89.7 last year during the same time.
Pre-tax catastrophe losses were $117 million during the third quarter, a decline from $158 million last year during the period. However, losses for the year thus far are more than $1 billion, compared to $441 million at the end of September 2009.
Losses for the third quarter were largely due to severe wind and hail storms.
Despite the challenges presented by the economic environment and soft market conditions, agency automobile and homeowners lines each saw an increase in policies-in-force of 1 percent and 4 percent, respectively, said Brian MacLean, president and chief operating officer.
"Earned rate increases outpaced loss cost trends" in both lines, he added during the conference call.
Net written premiums in personal insurance increased 8 percent compared to the prior year quarter to about $2 billion as the company rolled out 12-month policy terms for auto insurance in certain markets.
Business insurance net written premiums were up 2 percent from the previous year's third quarter as economic conditions continued to affect exposure changes at renewal, premium adjustments, policy endorsements and mid-term cancellations, the insurer said.
The underwriting gain for business lines was $206 million during the third quarter compared with $366 million during the same time last year. Mr. Maclean said loss costs slightly outpaced rate increase changes.
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